Which of the Following Is Not Considered to Be a Valid

question 52

Multiple Choice

Which of the following is not considered to be a valid performance measure of a waiting line system?

• A) the average number of customers waiting in line
• B) the customer population source
• C) the average number of customers in the system
• D) the average amount of time customers spend waiting
• E) the system utilization rate

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Definitions:

Contribution Margin

A financial metric that represents the difference between a company's sales revenue and variable costs, used to cover fixed costs and profits.

Fixed Costs

Costs that do not fluctuate with the level of production or sales within a certain range, such as rent, salaries, and insurance premiums.

Variable Cost Per Unit

The cost associated with producing one additional unit of product or service, which varies depending on the level of production or service delivery.

Selling Price Per Unit

The amount at which a single unit of product is offered for sale to customers.